The Bloomberg writers moved this bit to the third paragraph (our emphasis):

...Frank said Congress also needs to figure out what to do with the remaining shareholders in Fannie Mae and Freddie Macas well as investors in the companies’ $5.4 trillion in mortgage bonds and $1.7 trillion in unsecured corporate debt.

“That will be one of the things we will be talking about,” Frank told reporters after the hearing.

“The stockholders were of course already pretty much beaten up.”

My rather sharp-tongued grandmother used to say, "A remarkable grasp of the obvious".Fannie traded over $70 as recently as August, 2007.

...Although I don't have any inside information on this, my best guess is that current common shareholders will get wiped out with maybe some warrents or an equity stub as a bone to this rather powerless constituency....